Suppose the price of Pizza is $10 the price of cola is $1, and the consumer's income is $60. In addition, suppose the consumer's budget constraint measures pizza on the horizontal axis and cola on the vertical axis. If the price of cola doubles to $2 while both the price of pizza is still $10, and the income is constant at $60 then the : a-Budget constraint intersects the vertical axis 30 colas b- Slope of the budget constraint rises to -5/2 c- Budget constraint intersects the horizontal axis at 25 pizzas d- budget constraint intersects the horizontal axis 5 pizzas

Suppose the price of Pizza is $10 the price of cola is $1, and the consumer's income is $60. In addition, suppose the consumer's budget constraint measures pizza on the horizontal axis and cola on the vertical axis. If the price of cola doubles to $2 while both the price of pizza is still $10, and the income is constant at $60 then the : a-Budget constraint intersects the vertical axis 30 colas b- Slope of the budget constraint rises to -5/2 c- Budget constraint intersects the horizontal axis at 25 pizzas d- budget constraint intersects the horizontal axis 5 pizzas

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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